Slimmer IBM Shows Moderate Second Quarter GrowthSlimmer IBM Shows Moderate Second Quarter Growth

IBM experienced tepid to moderate growth across major business lines in the second quarter, the company said Monday. For the period ending June 30, comparable, year-over-year revenues increased 4% to $21.74 billion.

The company's global services arm increased sales 4% to $12 billion, hardware revenues increased 4% to $5 billion, and software sales climbed 7% to $3.8 billion. The figures are adjusted to exclude gains from international currency fluctuations and the effect of IBM's sale of its PC business to China's Lenovo Group.

The company's comparable net income in the quarter was $1.82 billion, a year-over-year increase of 4.5%. Earnings per share were $1.12, compared to $1.01 a year earlier. Not included are gains due to a settlement with Microsoft and the PC group sale and charges arising from IBM's workforce restructuring. Analysts, on average, had been expecting IBM to post adjusted, per-share earnings of $1.13.